NEGATIVE COST STATEMENT

Updated: Nov. 1, 2025

1. What is it?

A Negative Cost Statement is a formal accounting document that summarizes the total production costs of a motion picture, often referred to as the “negative cost.” This term originates from the era of film negatives, referring to the full cost to produce a finished version of the movie, up to and including the final answer print. The statement details all major cost categories (e.g., development, pre-production, production, post-production) and breaks down expenditures across labor, equipment, facilities, insurance, and more. It is a required component in most legal delivery schedules, especially for distributors, insurers, sales agents, and financial auditors.

2. Who is it for?

The Negative Cost Statement is primarily used by:

• Film Producers preparing legal delivery to distributors, investors, or insurers

• Distributors & Sales Agents verifying budget integrity and legal delivery terms

• Completion Bond Companies confirming that production remained within budget

• Entertainment Lawyers & Accountants managing rights, audits, and tax filings

• Financiers / Investors verifying expenditure and calculating recoupment positions

• Broadcasters / Streamers requiring proof of full production spend for compliance

3. What does it include?

A complete Negative Cost Statement is typically formatted in Word format stating the final budget total. It should be signed and dated by the producer or production accountant.

Key Sections and Terms:

• Project Title

• Production Company Name

• Date Signed

• Total Final Negative Cost (USD or local currency)

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